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There is neither any supply of goods nor services flowing from the applicant. The applicant actually gets the products manufactured by the CBUs.

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Authority for Advance Ruling — Manufacture by Contracting Bottling Units – The applicant is the holder of various registered brands in relation to Indian Made Foreign Liquor (“IMFL”). The State Excise laws mandate that the manufacture and sale of IMFL, as well as the procurement of Extra Neutral Alcohol (“ENA”) required for the manufacture of IMFL, can only be undertaken by parties, who have been duly licensed by the State Excise authorities. The Applicant entered into contacts with Contracting Bottling Units (“CBUS”) who hold the requisite licences under the State Excise laws to source the ENA and carry out the manufacture and bottling of the IMFL. The applicant sought an advance ruling as to (i) whether the CBUs is making a taxable supply to the Applicant, or, alternatively, whether the Applicant is making a taxable supply to the CBU (ii) whether the Applicant is paying consideration to the CBU by way of bottling charges, or, alternatively, whether the CBU is paying consideration to the Applicant by way of brand owner surplus.
Held that:- The Hon’ble Authority for Advance Ruling ruled out that there is neither any supply of goods nor services flowing from the applicant. The applicant actually gets the products manufactured by the CBUs. Hence there is no supply of goods or services or both by the applicant under Section 7 of the Act, 2017. The remaining questions, not undertaken by the applicant, are not answered being out of the purview of this Authority.—Allied Blenders And Distillers Private Limited, In Re… [2018] 07 TAXLOK.COM 089 (AAR-Maharashtra)